Telecoms equipment maker Ericsson dropped 20 percent to its
lowest point since 2008 after warning that its third-quarter
profit would be "significantly lower" than expected after a
downturn in its mobile broadband business had accelerated.

"They're near the bottom of the pile in terms of mobile now,
in the age of Apple and Samsung, Ericsson don't really have a
look-in," Jonathan Roy, advisory investment manager at Charles
Hanover Investments, said.

"They haven't really come up with any new or exciting
products, so I wouldn't be surprised to see them go further
down."

Peer Nokia also dropped, down 5.1 percent, set
for its biggest daily loss since June 27.

Among the top risers, however, Deutsche Lufthansa
gained 4.3 percent after an upgrade from Kepler Cheuvreux.

UK staffing firm PageGroup extended its gains from
the previous session, up 3.3 percent following a spate of target
price upgrades. The company reported a set of better than
expected results in the previous session.

"Trading in the third quarter was better than expected as
demand in the UK held up better than feared," analysts at
Barclays said, adding that they expected a more gradual decline
in demand over 2017 and 2018.

Italian lenders outperformed a flat bank sector, with UBI
Banca, Banco Popolare and UniCredit
up between 2.4 and 6 percent, after an upbeat note from Citi.

"Asset quality is starting to recover and the main sector
issues are well-known and reflected in current low valuation,
due to fear on system stability," Citi said in a note.

Italian banks have been among the worst performers in their
sector this year on concerns over capital shortfalls and a
mountain of bad loans.
(Editing by Sudip Kar-Gupta and Dominic Evans)